Every entrepreneur needs the banks to perform certain services for their small business. Receiving payments, making payments and providing finance to small business, these have been some of the services banks are providing to small business.
In todays reality it hardly matters if you have money in the bank or if you owe money, you feel venerable. If you have money you need to worry if your bank is going to collapse and you lose your money, if you owe money the banks make you pay for ‘their’ reckless behavior by canceling your overdraft.
As small business owners we need to understand, these guys are no better at business than we are, in fact they are worse most of the time. We all have to act accordingly:
- Have more than one bank account – if one goes down you still can operate;
- Get free banking – they need your business, now more than ever;
- Spread your borrowing – that way you have a chance to survive if they need their money back, this will actually help them too;
- Spread your cash balances – so they don’t take you down with them;
- Do not take bankers business advice, they have no idea, go and see your accountant for business advice.
Always remember they have only their own interest in mind, and so they should – up to a point. This means they do not have your interest at heart, any statement to the contrary is a lie.
Think about your business and nothing else, don’t take the easy road. Sometimes it is better to let a contract go, before putting your whole business at risk by dealing with banks. — ST.